100% agree.........and this is why you have companies like Zappos (shoes) who are super successful because their customer service is fabulous, they do it as you describe, and people have zero problem paying full retail there. The one time I had a problem, they not only shipped out my correct order the same day, but upgraded me to express shipping, and I was dumbfounded, since I live in the middle of nowhere and the ups truck pulled up in my driveway THE NEXT DAY. (as well as the RMA to return the shoes that were the wrong size). That is unheard of around here.
Customer service is everything to a lot of folks, even though it often looks like it's about "price".
LLBean has similar customer service; also warranties their products for life, no questions asked. Had a bag damaged- at CDG, surprise, surprise, and LL Bean sent me out a new one and sent a return shipping label for the damaged one. Much easier than filing a claim with the airline. Their prices are a bit higher than similar stores, but the customer service and piece of mind makes the higher cost worth it.